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https://issues.apache.org/jira/browse/FINERACT-2208?page=com.atlassian.jira.plugin.system.issuetabpanels:all-tabpanel
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Arnold Galovics updated FINERACT-2208:
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Description:
h4. Product settings that this should work for:
* Cumulative repayment schedule (penalties, fees, interest, principal order)
* Flat interest, equal installments; declining interest, equal installments;
declining interest, equal principal
* Grace on penalty posting - any number of days
h4. Repro steps:
# Loan is disbursed while it's already overdue
# Apply overdue penalties to overdue job is executed
# Add accrual transactions job is executed (or periodic) (or can be skipped if
cash accounting is used on the LP)
# Do a backdated repayment during the period of the first overdue installment
h3. Example:
LP is 4 days long, 3 repayment periods, 5k disbursed, no interest.
Before step 4:
|*Date*|*Transaction type*|*Amount*|*Principal*|*Penalties*|
|1-Jan|Disbursement|5000| | |
|5-Jan|Accrual|16.67| |16.67|
|9-Jan|Accrual|50.01| |50.01|
After step 4:
|*Date*|*Transaction type*|*Amount*|*Principal*|*Penalties*|
|1-Jan|Disbursement|5000| | |
|5-Jan|Accrual|16.67| |16.67|
|7-Jan|Repayment|1000.0|983.33|16.67|
|9-Jan|Accrual|50.01| |50.01|
In this case the 9th of Jan Accrual tx accrues 50.01 as a penalty even though a
repayment was made before so the outstanding principal decreased which the
penalty calculation should be based off.
Correct behavior After step 4 would be (strikethrough means reversed):
|*Date*|*Transaction type*|*Amount*|*Principal*|*Penalties*|
|1-Jan|Disbursement|5000| | |
|5-Jan|Accrual|16.67| |16.67|
|7-Jan|Repayment|1000.0|983.33|16.67|
|-9-Jan-|-Accrual-|-50.01-| |-50.01-|
|9-Jan|Accrual|33.33| |33.33|
was:
Penalties applied to a loan are calculated based on the principal outstanding
at the booking date of the penalty, NOT based on the principal outstanding at
the “job run” date
h4. Product settings that this should work for:
* Cumulative repayment schedule (penalties, fees, interest, principal order)
* Flat interest, equal installments; declining interest, equal installments;
declining interest, equal principal
* Grace on penalty posting - any number of days
h4. Process that this should work for:
# Backdate penalties job is ENABLED
# Loan is disbursed
# Repayments are posted on the loan account
# Run the penalty job first time
# Run the penalty job every night going forward
h3. Example:
Desired change is the calculated penalty before the repayment on Feb 4. This is
what the transaction schedule should look like (added some columns here for
description)
NOTE: whether or not the 4 Feb accrual is based on the balance on 4 Feb 00.01
or 23.59 doesn’t really matter, whatever is easiest. For illustration purposes,
I’ve assumed it’s the balance at 23.59 on 4 Feb
|*Date*|*Transaction type*|*Amount*|*Principal*|*Interest*|*Penalties*|*Loan
balance*|*Remaining principal balance of that installment*|
|3-Feb|Accrual|100| | |100 (3,333 * 3%)| |3,333|
|4-Feb|Repayment|2,000|1,900|100| |8,100|1,433|
|4-Feb|Accrual|43| | |43 (1,433*3%)| |1,433|
|5-Feb|Accrual|43| | |43 (1,433*3%)| |1,433|
|6-Feb|Accrual|43| | |43 (1,433*3%)| |1,433|
|7-Feb|Accrual|43| | |43 (1,433*3%)| |1,433|
|8-Feb|Repayment|1,000|1,000| | | |433|
|8-Feb|Accrual|13| | |13 (433*3%)| |433|
|9 Feb (onwards)|Accrual|13| | |13 (433*3%)| |433|
> Penalty is not recalculated after backdated transactions
> --------------------------------------------------------
>
> Key: FINERACT-2208
> URL: https://issues.apache.org/jira/browse/FINERACT-2208
> Project: Apache Fineract
> Issue Type: Bug
> Affects Versions: 1.11
> Reporter: Arnold Galovics
> Assignee: Arnold Galovics
> Priority: Major
> Fix For: 1.12
>
>
> h4. Product settings that this should work for:
> * Cumulative repayment schedule (penalties, fees, interest, principal order)
> * Flat interest, equal installments; declining interest, equal installments;
> declining interest, equal principal
> * Grace on penalty posting - any number of days
> h4. Repro steps:
> # Loan is disbursed while it's already overdue
> # Apply overdue penalties to overdue job is executed
> # Add accrual transactions job is executed (or periodic) (or can be skipped
> if cash accounting is used on the LP)
> # Do a backdated repayment during the period of the first overdue installment
> h3. Example:
> LP is 4 days long, 3 repayment periods, 5k disbursed, no interest.
> Before step 4:
>
> |*Date*|*Transaction type*|*Amount*|*Principal*|*Penalties*|
> |1-Jan|Disbursement|5000| | |
> |5-Jan|Accrual|16.67| |16.67|
> |9-Jan|Accrual|50.01| |50.01|
> After step 4:
> |*Date*|*Transaction type*|*Amount*|*Principal*|*Penalties*|
> |1-Jan|Disbursement|5000| | |
> |5-Jan|Accrual|16.67| |16.67|
> |7-Jan|Repayment|1000.0|983.33|16.67|
> |9-Jan|Accrual|50.01| |50.01|
>
> In this case the 9th of Jan Accrual tx accrues 50.01 as a penalty even though
> a repayment was made before so the outstanding principal decreased which the
> penalty calculation should be based off.
>
> Correct behavior After step 4 would be (strikethrough means reversed):
> |*Date*|*Transaction type*|*Amount*|*Principal*|*Penalties*|
> |1-Jan|Disbursement|5000| | |
> |5-Jan|Accrual|16.67| |16.67|
> |7-Jan|Repayment|1000.0|983.33|16.67|
> |-9-Jan-|-Accrual-|-50.01-| |-50.01-|
> |9-Jan|Accrual|33.33| |33.33|
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